The Advantages of DGI Investing
Almost everyone would prefer to “get rich quick” – even yours truly, back in the day.
This lottery mindset can mean we try to find the next big thing – be it a wonderful new product, the latest new piece of technology or the company that will eventually win the AI war over the coming few decades.
But the harsh reality is that, as with the lottery, very few succeed in picking a winner. No one really knows which of the many competitive companies will win in a product or technology race, or will be able to create and sustain a market advantage and profitability over time. Even when we find an apparent needle in the haystack, the stock price rise is often fueled by speculative enthusiasm about potential earnings, which entails enormous risk of an abrupt stock price crash when enthusiasm shifts.
Owning a fast-rising stock, we are faced with the ultimate question, “When do I sell this wonderful stock ?”. When it has risen by 100% … by 250% …. or when it has fallen back to where I bought it ?
This bet, to me, was always riddled with quite a high risk of not succeeding and a very high risk of actually losing part of my principal.
DGI investing is a low-risk alternative to the lottery mindset that so many investors fall into, and one associated very high probability of creating “wealth” and a recurring passive income.
Below, I explore a few of the most important factors that contribute to the high probability of ”getting rich slowly” that DGI offers.
Decreased Sequence-of-Returns Risk